1. Sales Force Management
11th Edition
Mark W. Johnston
Greg W. Marshall
Routledge 2013

2. Linking Strategies and the Sales Role in the Era of Customer Relationship Management
CHAPTER 3
Routledge 2013

3. Learning Objectives Understand key components and goals of CRM
Explain importance of market orientation and how it is fostered
Identify key steps in developing and implementing strategies
Describe role of personal selling in marketing strategy
Outline stages in developing strategic partnership relationships
Discuss actions salespeople can take to ensure long-term buyer- seller relationships
Routledge 2013

4. Customer Relationship Management (CRM)
Comprehensive business model for increasing revenues and profits by focusing on customers
Overarching business philosophy and process tool to facilitate a customer-driven enterprise
Routledge 2013

5. Example of CRM Software Sales and Marketing Module
Routledge 2013
Sources: StromasoftCRM software,, Customer Support Helpdesk Module, Sales & Marketing Module, Copyright (©) 2007 StromaSoft Ltd
3-5

6. Example of CRM Software Support Helpdesk Module
Routledge 2013
Sources: StromasoftCRM software,, Customer Support Helpdesk Module, Sales & Marketing Module, Copyright (©) 2007 StromaSoft Ltd
3-6

7. Customer Orientation
Customer drives the marketing strategy, which is driven by the marketing mix
Customer is the center of all marketing activities, and CRM software and touchpoints help ensure that the customer is accurately captured and monitored
Routledge 2013

8. Customer-Centric Cultures
Partnership business model with shared risks and rewards
Selling as customer business consultation
Formalized customer analysis processes and agreements
Proactively educating customers about value chain and cost reduction opportunities
Focus on continuous improvement principles stressing customer satisfaction
Routledge 2013

9. Marketing Evolution: Technology and Characteristics
Routledge 2013
Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 38.

10. Objectives of CRM Customer Retention Customer Acquisition
Customer Profitability
Routledge 2013

11. Advantages of CRM Reduces advertising costs
Increases awareness of customer needs
Tracks effectiveness of promotional campaigns
Competition for customers based on service, not prices
Prevents over-spending on low-value clients, under-spending on high-value ones
Speeds time to develop and market a product
Improves use of customer channel
Routledge 2013

12. The CRM Process Cycle
Routledge 2013
Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 40.

13. 10 Critical Questions in CRM
Customers
Who are our customers?
What do our customers want and expect?
What is the value potential of our customers?
The Relationship
What kind of relationship do we want to build?
How do we foster exchange?
How do we work together and share control?
Managerial Decision Making
Who are we?
How do we organize to move value closer to our customers?
How do we measure and manage our performance?
How do we increase our capacity for change?
Routledge 2013

14. CRM Failures Often Management’s Fault
Disruption of routines
Perception of CRM as micro-management tool
Differences in expectations
Perceived lack of management support
Routledge 2013

15. Market Orientation Successful salespeople think beyond “selling”
Market-driven companies do better market sensing
Market-driven companies develop stronger relationships with customers and channels
Internal partnering a critical component
Routledge 2013

16. Classifying Capabilities of Market Oriented Firms
Routledge 2013
Source: George S. Day, “Capabilities of Market-Driven Organizations,” Journal of Marketing 58 (October 1994), pp. 37–52. Reprinted by permission of the American
Marketing Association.
3-16

17. Strategy Development
From the company mission come the goals and objectives
These goals and objectives are overarching for the company, and generate strategy meant to fulfill them
Goals and objectives are cut into smaller, attainable ones for employees to reach
Strategic business units aid in this process
Routledge 2013

18. SBU Strategy
How the business will compete in its industry to achieve sustainable competitive advantage (SCA)
SCA focuses on distinctive competencies
Porter’s Three Generic Strategies:
Low Cost
Differentiation
Niche
Routledge 2013

19. Steps in Developing and Implementing Strategies
Routledge 2013

20. Types of Relationships between Buyers and Sellers
Routledge 2013
Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Partnerships, 6th ed. (New York: Irwin/McGraw-Hill, 2005).

21. Personal Selling’s Role in Market Exchanges
One-shot transactions occurring between a buyer and seller with limited thought of future consideration
Roles of salespeople
Create new value
Adapt
“Make the market”
Exit
Routledge 2013

22. Personal Selling’s Role in Functional Relationships
Create a climate of cooperation, with open and honest communication
Roles of salespeople
Engender high level of personal trust in well managed business activities
Provide expertise for competitive advantage
Danger when one party in the relationship leaves
Routledge 2013

23. Personal Selling’s Role in Strategic Partnerships
Long-term relationships where both parties make significant investments
Roles of salespeople
Direct communication with production, production designers, and others
Relationship manager and general manager
Work with clients large enough to make investments worthwhile
Routledge 2013

24. Relationship Development
Stage 1
Exploration
Stage 2
Expansion
Stage 3
Commitment
Determine value, build trust, set proper expectations, monitor
Generate repeat sales, full-line selling, cross-selling
Build loyalty, become a preferred supplier, engage in TQM
Note to instructor – click on circles to display activities within each stage
3-24

25. Building Customer Relationships
Under promise, over deliver
Don't forget the small things.
Stay in contact
Establish a feedback system
Routledge 2013

26. Integrated Marketing Communication (IMC)
Integrates personal selling, advertising and other communications options
Advantages of selling in IMC
Face-to-face contact
More persuasive
More demonstrative
Customization opportunities
Disadvantages of selling in IMC
Limited ability to duplicate
More costly
Routledge 2013

27. Factors Influencing Personal Selling in an IMC Strategy

28. Illustrative Factors that Influence the
Design of IMC strategy
Source: Adapted from David W. Cravens and Nigel F. Piercy, Strategic Marketing, 8th ed. (New York: Irwin/McGraw-Hill, 2005), p. 348.

29. Customer Feedback
Maintaining customer loyalty is crucial for improving profitability
Loyal customers . . .
Tend to concentrate on purchases
Provide positive customer referrals
May pay premium prices for value they receive
Supplement satisfaction measures with examinations of customer behavior
Annual retention rate
Frequency of purchases
Percentage of the customer’s total purchases captured by the firm
Routledge 2013